^!ii 


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H^.  15    191G 


Data  on  Recording  and  Han 

DUNG  Credits,  Collections, 

AND  Complaints 


Supplementary  to  Section  XV  of  Scientific 
Office  Management**  by  W,  H,  Leffingwell 


A.  W.  SHAW  COMPANY 

CHICAGO      NEW  YORK 
LONDON 


http://www.archive.org/details/dataonrecordinghOOsha^ 


DATA   ON   RECORDING   AND   HANDLING 
CREDITS,   COLLECTIONS,   AND 
COMPLAINTS 


Here  is  the  system  used  by  one  exceptionally  successful 
house  for  recording  all  correspondence  and  papers  having  to 
do  with  credits,  collections  and  complaints. 

The  credit  manager  uses  folders  like  that  shown  on  page 
^  for  keeping  all  correspondence  and  data  referring  to  the 
credit  of  the  firm's  customers.  At  J;he  top  center  of  the  folder 
is  the  general  information  about  the  customer,  such  as  the 
name,  the  address,  the  rating,  references,  the  name  of  the  cus- 
tomer's bank,  and  so  forth,  with  room  for  any  remarks. 
Directly  below  this  are  spaces  providing  for  a  complete  record 
of  collections  made  through  attorneys. 

On  the  left  side  of  the  folder  is  a  history  of  the  account, 
with  columns  for  the  date,  the  amount,  the  discounts,  the  dates 
of  paj^ment,  and  so  on.  At  the  right  is  the  date  the  account 
was  opened,  as  well  as  spaces  for  indicating  the  credit  limits 
placed  by  the  credit  manager.  Directly  below  this  is  a  table 
of  credit  limits,  which  provides  for  three  kinds  of  customers — 
those  who  discount,  those  who  pay  promptly  at  maturity,  and 
those  who  are  fair  pay.  In  the  first  column  of  the  table  are 
the  symbols  designating  the  class  to  which  each  kind  of  cus- 
tomer belongs. 

Into  the  folder  are  put  all  correspondence,  reports,  and 
other  papers  referring  to  the  credit  of  the  customer.  The 
manager  finds  it  quite  helpful  to  paste  the  reports  on  the  inside 
of  the  front  cover,  where  they  are  always  ready  for  immediate 
reference.  Thus  the  folder  contains  a  complete  record  of 
everything  pertaining  to  the  customer's  credit  with  the  house. 

Three  forms  comprise  all  the  records  that  are  needed  to 
handle  the  orders,  collections,  and  complaints  received  by  the 

(1) 


office  of  this  concern.  The  forms  are  so  simple  and  yet  so 
complete*  that  no  other  records  whatever  are  required.  And 
most  of  the  work  of  recording  is  done  when  the  order  is  passed 
and  the  goods  shipped. 

In  order  to  clearly  understand  just  how  this  probably 
unique  system  works,  a  glance  first  at  the  routine  of  the  order 
department  will  be  helpful.  When  an  order  comes  in,  a  colored 
sheet  like  that  shown  on  page  3  is  attached  by  the  mail 
opener  to  the  order,  which  then  goes  to  the  order  clerk.    Here 


J 


V 


HISTORY  OF  ACCOUNT 


Month 
19 


Disc't  Date  paid  Claims 


Change  of  address \ 

Corporation Partnership. Fancy  style ^Who  pays  the  bills?_ 

Dun  rating Reports  on  file___ . 

References 


Submitted  signed  statement. 
REMARKS 


Date  to  Attys. 


COLLECTION  THROUGH  AHORNEYS 


-          /  Itemized  statement 
Papers  \  s»,orn  statement 
sent   J  Original  order 


Reports . 


Account  opened__ 

Umit O.K'd  by. 


TABLE  Ot  LIMITS 

A6ENCIES 


G 

Small 
P.T. 


When       Prompt  al    t  .„  , 
discounting    maturity  ' 


Wants 

Wants 

$1,000 

500 

300 

200 

100 

Refer 


$1,000 
750 
Refer 
Refer 
Refer 
Refer 
Refer 


Refer 

0 

0 

0 

0 

0 
Refer 


Chanced  -This  only 


DIRECT 


U 
V 

w 

X 
Y 
Z 

Small 
P.T. 


P.T.E. 
STOP 
N.M.C. 


Wants 

Wants 

$1,000 

500 

300 

200 

Refer 


$1,000 
500 
30Q 
200 
100 
Refer 


$500 
200 
100 
Refer 
Refer 
"Refer' 


Chanced  -This  only 


4==1: 


Passed  through  error 

No  credit  tjil  paid 

No  more  credit 

I L-:. 


THIS  FOLDER  HOLDS  ALL  THE  CREDIT  DATA 

Into  a  folder  like  this  are  put  all  correspondence,  reports,  and  other  papers  re- 
ferring to  the  customer's  credit.     By  pasting  all  the  reports  on  the  inside  of  the 
cover,  they  are  permanently  fastened  to  the  folder  and  yet  are  always  ready  for 
immediate  reference  by  the  credit  manager 


the  order  is  analyzed,  and  the  necessary  accounting  and  ship- 
ping data  indicated,  both  on  the  order  and  on  the  attached 
sheet.  The  order  is  then  entered  on  the  order  register,  and 
given  a  number  corresponding  to  that  on  the  register.  From 
this  point  on,  that  particular  order  is  referred  to  as  ** Account 
No.  so  and  so." 

The  registry  clerk  sends  the  order  to  the  plate  department, 

(2) 


g                        No-  52397 

^a/i/  /^  J^^^^^^nyp2 

PLATE  IMPRESSION 

Carl  A    Klemm                                       9. 20                           June  2 ,  1917 

204  Paul  Jones  Bldg 

Louisville    Ky                                  52397B                                       #10. 00 

ORDER  NU 

MBER 

EXPIRES 

BOOKS 

C.  0. 

PAID 

0.  R. 

CANCELED 

R.B. 

RATING 

CRED 
INST 

IT 
RUCTIONS 

AMniINT    /^^^ 
1    PAin 

CASH  ORDER 
AMOUNT 
DISCOUNT 

LIST 

JUN  2    LRM. 

BALAN 

CE 

PROOFREAD 

JUN  2    E.CA. 

TERMS 

1 

BILLED 

rA> 

EXTEND  SUBSCRIP1 

W^K^^^i^A 

JUN2    ILJ^. 

2 

/ 

PLATE  LIJ 
NEW  EXP 

BEEER  TO 

(C) 

IRATION  DATE 

3 

RFMARKS 

FILED 

4 

JUN  2     BAT. 

STANDARDIZING  THE  ORDER  ROUTINE 

When  an  order  comes  in,  a  colored  sheet  like  this  is  attached  by  the  mail  opener 
to  the  order,  which  then  goes  directly  to  the  order  clerk,  who  analyzes  the  order 
and  indicates  on  this  slip  the  accounting  and  shipping  data.  As  each  clerk  han- 
dles the  order,  he  stamps  his  initials  and  the  date  in  the  right  hand  column 


(3) 


.  where  an  address  plate  is  made,  containing  the  complete  address 
of  the  customer,  the  date  of  the  order,  the  order  number,  the 
particulars  of  the  order  (as  indicated  by  standard  symbols), 
and,  in  the  case  of  a  subscription,  the  date  the  subscription 
expires. 

An  impression  of  this  plate  is  then  taken  on  the  colored 
sheet,  and  compared  carefully  with  the  original  order,  to  make 
sure  that  it  is  absolutely  correct  in  every  respect.  If  the  plate 
is  correct,  it  then  goes  to  the  billing  department.  It  is  at  this 
point  that  the  other  record  forms  are  prepared.  The  billing 
clerk,  using  the  plate  she  has  just  received,  now  stamps  six 
separate  forms.  All  are  of  course  originals,  hence  are  clean 
and  easy  to  read,  and  since  they  are  made  from  the  same  plate, 
all  are  correct,  and  contain  exactly  the  same  information. 

r     THESE  TWO  FORMS  SIMPLIFY  THE  HANDLING  OF  COM- 
PLAINT AND  COLLECTION  RECORDS 

Two  of  these  six  forms  comprise  the  records ;  the  other  four 
forms  stamped  by  the  billing  clerk  are  the  shipping  label,  the 
duplicate  express  receipts,  and  the  invoice.  The  label  and 
receipts  go  to  the  shipping  room,  and  since  they  contain  the 
full  details  of  the  order,  as  expressed  in  symbols,  the  order  is 
filled  from  them.  The  invoice  goes  to  the  mailing  department, 
where  it  is  slipped  into  a  "window"  envelope,  and  mailed  at 
the  proper  time,  usually  seven  or  eight  days  after  the  order  has 
been  shipped,  thus  allowing  plenty  of  time  for  the  goods  to 
reach  the  customer. 

Let  us  now  examine  the  two  remaining  forms  which,  as 
stated  at  the  beginning  of  this  section,  form  the  only  records 
needed  to  follow  up  collections  or  adjust  complaints.  These 
two  forms  are  the  "account  card"  and  the  "list  card,"  and  their 
names  are  fully  descriptive  of  their  uses.  The  list  card,  shown 
on  page  5,  goes  from  the  billing  clerk  to  the  list  department, 
where  it  is  filed  alphabetically,  with  the  hundreds  of  thousands 
of  other  cards  already  there.  These  list  cards  form  the  "master 
index"  of  the  company's  customers.  Seven  double  bank  "tub 
desks"  are  used  to  hold  these  cards,  and  over  20,000  guide  cards 
are  used,  making  the  location  of  any  card  a  matter  of  a  few 
seconds. 

The  account  card,   shown  on  page  6,  is  now  compared 

(4) 


with  the  order  register,  to  make  sure  that  the  order  has  been 
entered  correctly.  It  then  goes  to  the  accounting  department 
where  it  is  filed  by  its  number  and  special  division,  according 
to  the  class  of  goods  ordered.  This  concern  has  five  classes  of 
goods,  each  represented  by  a  single  letter,  which  greatly  sim- 
plifies both  the  filing  and  the  finding  of  any  account  card.  The 
account  cards  are  kept  in  trays  on  a  truck,  which  is  wheeled 
into  the  vault  at  night. 


Carl  A.  Klernrn, 

9  20               ! 

204  Paul  Jones  Bldg. 

t 
1 

Louisville,  Ky. 

52397B                 1 

CO.    PAID    O.R.    CANCELED   R.B. 

ORDER  NUMB 

ER 

EXPIRES 

BOOKS 

■ 

— 

THE  LIST  CARD 

The  3x5  card  which  is  made  at  the  same  time  as  the  account  card  contains  the 

name,  the  expiration  date  and  the  order  number  of  each  customer.     It  is  filed 

alphabetically  in  the  "master  index"  with  the  hundreds  of  thousands  of  other 

cards  already  there.     These  list  cards  are  contained  in  "tub  desks" 

One  feature  of  this  two-card  record  system  is  its  extreme 
flexibility.  For  instance,  there  is  an  account  card  for  every 
order;  this  means  that  there  may  be  several  account  cards  for 
a  particular  customer.  This,  however,  is  no  drawback,  since, 
when  any  account  is  paid,  that  particular  account  card  is 
stamped  "paid,"  removed  froni  the  unpaid  accounts,  and  trans- 
ferred to  the  file  of  paid  accounts.  At  stated  periods,  the 
paid  account  cards  over  six  months  old^  are  destroyed,  since 
of  course  there  is  no  further  use  for  them:  the  particular 
account  has  been  settled,  a  generous  time  has  elapsed  for 
complaints,  and  there  is  no  need  of  cluttering  the  files  with 
useless  cards.     On  the  other  hand,  none  but  active  accounts 

(5) 


remain  in  the  unpaid  file,  and  we  shall  soon  see  how  these  are 
handled  in  the  routine  of  collections  and  complaints. 

Perhaps  a  last  word  of  explanation  ought  to  be  given  con- 
cerning the  list  cards.  Although,  as  we  have  seen,  there  may 
be  several  account  cards  for  any  one  man,  there  is  only  one 
list  card.  The  way  this  is  handled  is  interesting  and  worthy 
of  our  attention. 


June  2 

,1917 

ACCOUNTING  DEPARTMENT  1 

carl  A    Elenn                                   9  20 

204  Paul  Jones  Bldg 

Louisville    Ky                                 S2397B 

#10.00 

ACCOUNTING  DEPARTMENT  2 

STATISTICAL  DEPARTMENT  _____ 

LIST  DEPARTMENT 

PLATE  DEPARTMENT 

COLLECTION  DEPARTMENT 

DATE 

PAID  TO 

CREDIT 

BALANCE 

DEBITS 

JUL2.   E.KJ> 

BILL 

f/^f      J^^.r.4>^^  7^y^.^rUl. 

AUG2''E.K.(> 

ff-::/^     /^-^  yi7^<7      /S<<77v*«^     /^/f 

SEP2   EKP. 

^^/^i^i,^;;^-!^  ^^^ 

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S  A 

— 

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SB 







< 

THE  ACCOUNT  CARD 

This  5x8  card  contains  the  same  information  as  the  list  card,  and  in  addition 

this  card  also  bears  the  date  and  the  amount  of  the  order.     It  is  filed  by  its 

number  and  the  special  division,  as  denoted  by  the  letter,  in  this  instance  **B." 

All  unpaid  account  cards  are  filed  together 

The  two  right  hand  numbers,  in  line  with  the  name  of  the 
customer,  are  the  symbols  indicating  the  kind  of  goods  ordered. 
The  number  opposite  the  address  on  the  bottom  line  is  the 
order  number,  which  is  also,  of  course,  the  account  number.  It 
is  important  to  note,  however,  that  this  number  refers  only 
to  the  first  order  received  from  this  customer.  Subsequent 
order  numbers  are  entered  in  the  columns  provided  on  the  card, 
which  henceforth  becomes  the  record  of  all  business  with  this 
customer.  Simply  as  a  convenient  cross-reference,  each  account 
card  usually  bears  the  numbers  of  all  the  other  orders  received 
from  the  same  customer.    This  is  helpful  in  posting  payments. 

Thus  for  each  customer  there  is  a  list  card  filed  alpha- 

(6) 


betically,  containing  all  the  account  numbers,  and  an  account 
card  filed  by  number,  one  card  for  each  order. 

We  are  now  ready  to  see  how  collections  and  routine  com- 
plaints are  handled.  Let's  suppose  that  the  customer  sends 
in  a  complaint  shortly  after  he  has  sent  in  his  order.  The  letter 
comes  to  the  mail  opening  department,  where  it  is  opened  and 
read.  The  mail  opener  notes  the  nature  of  the  complaint, 
places  a  check  mark  against  that  complaint  on  a  list  of  standard 
complaints,  and  sends  the  letter  to  the  adjustment  department. 

THIS  ROUTINE  FOR  ADJUSTING  CUSTOMERS'  COMPLAINTS 
HAS  WORKED  OUT  SATISFACTORILY 

In  order  to  unify  the  handling  of  complaints,  certain  cor- 
respondents in  the  adjustment  department  handle  only  com- 
plaints about  certain  classes  of  goods.  For  example,  one  man 
handles  only  the  complaints  about  one  of  the  magazines, 
another  handles  the  complaints  about  the  books,  a  third  about 
the  courses,  and  so  on. 

The  corresi^ondent  who  has  received  the  letter  that  has  just 
come  in,  pins  to  the  letter  a  pink  requisition  slip,  like  that  shown 
on  page  8.  If  the  complaint  refers  to  payments,  to  the  goods 
sent,  or  to  the  magazines,  he  places  a  check  mark  against  the 
words  "List  Dept."  If  this  is  all  the  information  he  desires, 
he  then  stamps  the  date  and  his  initials  at  the  top  of  the  requi- 
sition sheet,  after  the  word  "From,"  and  slips  the  two  papers 
into  his  outgoing  tray. 

The  letter  with  the  requisition  attached  goes  to  the  list 
department,  where,  as  we  have  seen,  there  is  one  card  for  each 
customer,  filed  in  alphabetical  order.  This  card,  you  will 
remember,  carries  not  only  the  customer's  name  and  address, 
but  also  the  particulars  about  the  various  orders  he  has  sent  in 
from  time  to  time.  The  list  clerk  reads  the  letter,  notes  what 
information  is  desired,  takes  out  the  card  and  notes  on  the 
requisition  slip  the  account  number,  the  goods  ordered,  and  the 
date  the  subscription  to  the  magazine  expires.  Then  he  stamps 
the  requisition  with  the  date  and  his  initials,  thus  placing  the 
responsibility  definitely  upon  him. 

When  the  correspondent  has  received  the  information  he 
wants  from  the  list  department,  he  gets  the  customer's  account 
card,  locating  it  by  the  account  number  which  the  list  depart- 

(7) 


FROM       JUN2    RNB.              ADJUSTMENT 

DEPARTMENT 

ly 

xCdcanwt-  luj,  SJL3  '?y  c> 

LIST 
DEPT. 

JUN  2     L,P.M. 

A 

Carl  A  laenffl                            9  20 

204  Paul  Jones  Bidg 

PLATE 
DEPT. 

LoulsTille  Ky                      S2397B 

.                                          JUN  2     F.J. 

ORDER  *" 

CORRESPONDENCE 

SHIPPING  RECEIPT 

JUN  2   RAX 

THE  SIMPLE  INFORMATION  REQUISITION 

Here  is  the  pink  requisition  sheet  which  is  attached  to  all  letters  of  complaint  and 

sent  to  the  adjustment  department.     The  correspondent  in  that  department  who 

receives  the  letter  simply  checks  on  this  sheet  what  information  he  desires  and 

stamps  the  date  and  his  initials  at  the  top 


(8) 


merit  has  given  him,  and  with  this  information  proceeds  to 
answer  the  letter  complaining  about  a  payment  or  about  the 
non-receipt  of  the  magazine  or  order,  whichever  it  is. 

The  next  letter  of  comj^laint  may  state  that  the  writer 
never  ordered  the  goods  for  which  he  has  been  billed.  Or  he 
may  refer  to  some  previous  correspondence;  or  he  may  not 
have  received  the  goods  at  all.  In  this  case  the  correspondent 
checks  the  proper  square  at  the  bottom  of  the  pink  requisition 
sheet  (page  8)  and  the  desired  material  is  obtained  by  the 
filing  department  and  sent  to  the  correspondent,  who  answers 
the  letter  according  to  the  information  he  receives. 

MANY  COMPLAINTS  WHICH  HAVE  BEEN  STANDARDIZED 
CAN  BE  ADJUSTED  WITHOUT  DELAY 

All  this,  of  course,  presupposes  that  the  customer's  name 
and  address  are  given  in  the  letter  of  complaint.  It  more  often 
happens  that  some  particular  is  omitted,  which  it  is  necessary 
to  have  before  the  letter  can  be  proj)erly  handled.  Accordingly 
the  correspondent  checks  the  words  "Plate  Dept."  The  plate 
department  locates  the  plate,  and  takes  an  impression  of  it 
on  the  pink  requisition  slip.  Then,  after  stamping  the  date 
and  the  initials  of  the  girl  doing  this,  the  requisition  and  letter 
are  returned  to  the  correspondent. 

The  correspondent  now  has  all  the  information  he  desires. 
If  the  complaint  is  one  that  has  been  standardized,  all  that 
is  necessary  is  to  jot  down  on  the  requisition  the  numbers  of 
the  standard  paragraphs,  and  pass  it  on  to  the  typist.  To 
facilitate  this  sort  of  "dictation,"  the  correspondent  has  in 
front  of  him  a  revolving  rack  which  contains  the  numbers 
and  topics  of  the  standard  paragraphs ;  all  of  these  are  plainly 
in  sight  at  all  times.  The  typist  has  a  corresponding  set  of 
cards,  so  arranged  by  number  on  a  rack  that  by  a  slight  move- 
ment of  her  forefinger  the  desired  paragraph  is  immediately 
shown,  ready  for  copying.  Should  the  letter  require  a  special 
answer,  the  correspondent  simply  turns  to  the  dictating 
machine  at  his  left  and  dictates  the  necessary  answer. 

The  automatic  "dunning"  routine  of  this  company  is  as 
nearly  human  perhaps  as  any  machinery  can  be.  A  carefully 
prepared  series  of  follow-up  letters  is  sent  to  each  unpaid 

(9) 


account  regularly,  every  30  days,  until  the  fourth  follow-up, 
which  is  sent  out  15  days  after  the  third  follow-up.  Three 
more  letters  are  sent  out  at  15  day  intervals  before  the  account 
is  finally  turned  over  to  the  attorneys. 


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THE  AUTOMATIC  DUNNING  SCHEDULE 

A  schedule  like  this  is  used  to  insure  the  correct  follow-up  letters  being  sent  out 
on  the  exact  dates.  Si  is  the  symbol  for  the  first  letter,  S2  for  the  second,  and 
so  on.  The  first  column  shows  that  on  July  9  all  accounts  dated  June  9  are 
to  receive  the  SI  letter.     The  first  three  letters  are  sent  at  30-day  intervals 

Here  is  where  the  simple  follow-up  system  comes  into  play. 
We  must  remember  first  that  all  unpaid  accounts — ^which  of 
course  are  the  only  accounts  followed  up — are  filed  together 
by  numbers.  Since  the  numbers  are  consecutive,  all  the 
account  cards  for  any  date  are  right  together.  Reference  to 
the  "dunning  schedule"  shown  above,  indicates  that  on  July 
9  all  accounts  dated  June  9  are  to  be  followed  up  with  letter 
number  one.  At  the  same  time,  follow-up  letters  numbered 
two  and  three  are  to  be  sent  to  accounts  dated  May  9  and 
April  9  respectively,  and  letters  numbered  four,  five,  six  and 

(10) 


seven  to  accounts  dated  March  24,  March  9,  February  24,  and 
February  9. 

Accordingly  the  girl  in  charge  of  the  account  card  files 
"pulls"  out  those  account  cards  which  bear  the  dates  specified. 
These  account  cards  are  then  distributed  among  the  typists. 
Each  typist  has  on  her  desk  a  cabinet  containing  a  supply  of 
the  standard  follow-up  letters,  all  processed  and  signed,  ready 
for  filling  in  the  name  and  address  of  the  customer.  The  typist 
notes  that  her  bunch  of  account  cards  is  to  receive  follow-up 
letter  number  one;  accordingly  she  selects  one  letter  number 
one,  inserts  it  in  her  typewriter,  fills  in  the  date,  name,  and 
address,  and  then  checks  the  account  card  opposite  the  figure 
"1"  by  stamping  the  date  and  her  initials,  to  show  that  the 
proper  letter  has  been  sent.  The  account  cards  are  then 
returned  to  be  filed,  to  come  up  again  30  or  15  days  later,  as 
the  case  may  be,  for  the  next  follow-up. 

WHAT  HAPPENS  TO  THE  "DUNNING"  MACHINERY  WHEN 
THE  CUSTOMER  PAYS  OR  WRITES  ? 

Most  customers,  of  course,  pay  their  accounts  before  the 
final  follow-up  letter  is  sent.  When  the  payment  is  received, 
the  account  card  is  "pulled,"  stamped  "paid,"  and  filed  with 
the  paid  account  cards.  This  automatically  stops  the  "dun- 
ning" routine  so  far  as  that  card  is  concerned. 

If  the  customer  writes  in  at  any  time  during  the  follow- 
up  period,  the  account  card  is  "pulled,"  and  when  the  letter 
has  been  answered,  either  by  special  dictation  or  by  standard 
paragraphs,  the  correspondent  notes  in  pencil  in  the  upper  left 
hand  corner  of  the  card,  the  date  the  letter  is  to  be  followed  up. 
The  correspondent  also  draws  a  pencil  line  through  the  rest 
of  the  follow-up  numbers  in  the  column  headed  "Bill"  and 
notes  the  substance  of  the  special  letter  in  the  column  to  the 
right,  stamping  the  date  of  the  answer  and  his  initials.  Should 
the  "puller"  pull  this  card  before  the  foUow-us  date  indi- 
cated, she  simply  puts  the  card  back  in  the  file.  When  the  card 
comes  up  again,  if  the  customer  has  not  been  heard  from,  the 
card  is  pulled,  and  another  special  or  standard  letter  sent,  so 
worded  as  to  bring  the  letter  into  line  with  the  regular  dun- 
ning routine  letters.  The  pencil  line  through  the  numbers  in 
the  "Bill"  column  and  the  date  in  the  upper  left  hand  corner 

(11) 


are  erased,  and  the  card  is  filed  in  its  proper  place  to  come  iip 
15  or  30  days  later  with  the  rest  of  the  unpaid  accounts  in  the 
regular  dunning  routine. 

There  is  a  limit  to  nearly  everything,  and  that  applies  to 
dunning  letters.  When  the  last  letter  has  been  sent,  and  the 
speciaj  attorney's  letter  has  brought  no  results,  the  account 
card  is  pulled,  and  the  accounting  department  "charges  off" 
the  account  as  a  bad  debt,  at  the  same  time  stamping  the 
words  "charged  off"  and  the  date  on  the  account  card.  From 
the  accounting  department  the  account  card  then  goes  to  the 
statistical  department,  to  reduce  the  credit  for  the  order  given 
to  any  particular  mailing.  The  card  then  goes  to  the  list 
department,  where  the  list  card  (page  5)  is  pulled  and  the 
date  of  the  charge  off  indicated  in  the  column^  "C.  O."  This 
list  card  is  then  filed  again  with  the  other  list  cards ;  at  any  time 
in  the  future  if  that  particular  customer  sends  in  a  charge 
order,  this  list  card  shows  that  he  still  owes  us  on  the  other 
order,  and  credit  is  refused  until  the  uncollected  balance  is  paid. 

The  plate  department  next  gets  the  account  card,  and 
removes  the  address  plate,  so  that  no  more  magazines  will  be 
sent.  Finally  the  account  card  is  returned  to  the  collection 
department  which  turns  it  over  to  the  attorneys  to  collect  what 
they  can. 

HOW  TO  HANDLE  THE  ACCOUNT  WHEN  THE 
CUSTOMER  "COMES  BACK" 

A  very  simple  and  effective  check  on  this  "charge  off" 
routine  is  provided  by  the  space  in  the  upper  right  hand  corner 
of  the  account  card.  As  the  card  is  handled  by  each  clerk,  he 
stamps  his  initials  and  the  date  in  the  proper  space. 

To  reinstate  an  account  that  has  been  charged  off,  it  is 
only  necessary  to  start  the  account  card  going  through  the 
routine  again,  by  sending  it  to  the  accounting  department, 
where  the  man  reinstating  the  account  stamps  his  initials  and 
the  date  beside  the  other  stamp,  only  turned  sideways.  The 
card  goes  in  turn  to  the  statistical,  list,  and  plate  departments, 
where  the  same  procedure  is  followed,  and  finally  comes  to  the 
collection  department,  where  it  again  takes  its  place  with  the 
unpaid  accounts. 

(12) 


So  much  for  the  recording.  The  remainder  of  this  pam- 
phlet is  to  be  given  over  to  the  actual  handling  of  credits, 
collectior^  and  complaint  letters,  especially  as  regards  policies 
and  their  application. 

The  poor  credit  rating  of  a  customer  or  of  a  prospective 
customer  is  ample  reason  for  limiting  his  dealings  with  the 
house.  But  to  restrict  those  dealings  by  refusing  to  sell  goods 
is  not  only  cutting  off  a  possible  source  of  present  profit,  but 
shutting  oiF  the  probability  of  further  dealings  in  that  direc- 
tion. There  are  various  ingenious  methods  by  which  the  experi- 
enced credit  manager  ''turns  down"  poorly  rated  customers, 
and  at  the  same  time  retains  all  or  part  of  their  trade  by  assist- 
ing them  to  handle  it  on  a  cash  basis. 

Possibly  the  hardest  letter  to  write  in  the  whole  field  of 
business  correspondence  is  the  one  which  turns  down  the  order 
from  a  business  man  having  a  poor  rating,  at  the  same  time 
getting  his  business  on  a  cash  basis.  And  this  is  a  proposition 
that  comes  up  almost  daily  to  the  credit  men  in  large  whole- 
sale houses  and  in  manufacturing  establishments. 

To  the  credit  man,  the  world  sometimes  appears  to  be  full 
of  retailers  whose  imaginations  are  greater  than  their  capital — 
merchants  who  dream  of  the  great  business  they  will  build  if 
they  can  only  get  credit.  Often  it  is  only  one  out  of  a  hundred 
who  makes  a  noticeable  success ;  some  may  drift  along,  forever 
haunted  by  sight  drafts  and  overdrafts,  and  others  may  sooner 
or  later  fail,  and  so  wholesale  houses  are  constantly  on  their 
guard  against  losses  from  this  class  of  customers. 

At  the  same  time,  these  hundred  merchants  represent  a 
volume  of  business  that  the  wholesaler  cannot  altogether  ignore. 
While  a  man's  credit  may  be  questionable  he  may  have  con- 
siderable trade  that  it  is  very  desirable  to  get  if  it  can  be  secured 
on  a  cash  basis  or  if  his  orders  can  be  held  down  to  a  safe  margin. 

Human  nature  is  so  constituted  that  the  "little  fellows" 
who  have  not  established  a  basis  for  credit  are  always  the  ones 
who  are  most  touchy  of  their  reputation,  and  so  gi-eat  diplomacy 
is  required  in  handling  them  in  a  way  that  will  hold  their  trade. 
^  There  are  some  firms  that  make  no  effort  to  secure  any  of 
this  business.  If  a  business  man's  rating  is  acceptable,  well 
and  good,  his  orders  will  be  filled,  but  if  there  is  any  doubt  as 

(13) 


to  his  financial  standing  he  is  informed  in  no  uncertain  terms 
that  his  patronage  is  not  desired.  But  the  credit  man  who  is 
looking  after  the  larger  interest  of  his  house,  always  meets  the 
vast  army  of  "little  fellows"  with  a  welcoming  hand  and  an 
encouraging  smile. 

If  he  must  turn  one  down  he  does  it  so  diplomatically  that 
the  way  will  be  left  open  to  go  after  his  business  later  on  if  the 
merchant  becomes  thoroughly  established.  In  every  city  there 
are  prosperous  business  men  who  started  out  with  small  capital 
and  were  considered  poor  credit  risks  at  one  time. 

The  large-caliber  credit  man  realizes,  moreover,  that  he  is 
a  salesman  as  well  as  a  collector  and  that  it  sometimes  pays  to 
coddle  along  the  small  dealers,  even  at  the  expense  of  an  occa- 
sional lost  account.  This  is  the  price  the  house  is  willing  to  pay 
for  the  additional  business  that  could  never  be  secured  by  limit- 
ing the  credits  too  strictly. 

SOME  WAYS  IN  WHICH  THE  CREDIT  MAN  CAN 
COOPERATE  WITH  HIS  CUSTOMERS 

Nearly  every  business  man,  at  some  time  or  other,  faces  a 
crisis  in  his  business.  Accidents  occur,  and  unforeseen  circimi- 
stances  arise.  Perhaps  he  may  commit  an  error  of  judgment, 
or  fail  to  focus  .his  business  in  the  proper  perspective ;  and  the 
result  is  that  bills  fall  due  when  there  is  no  money  in  the  till  to 
meet  them.  Often  these  conditions  strain  to  the  breaking  point 
what  is  a  perfectly  fair  credit  limit  in  normal  times. 

Such  cases,  when  they  come  under  the  credit  man's  eye, 
offer  him  the  opportunity  of  giving  constructive  service  to  the 
customer.  He  can,  if  he  makes  his  customers'  interests  his  own, 
in  many  instances  foresee  approaching  danger  and  put  the 
customer  on  his  guard  against  it.  The  credit  man  in  a  large 
concern  naturally  has  a  broad  outlook  on  the  trade.  He  sees 
national  conditions  and  anticipates  their  reaction  on  local  con- 
ditions. He  has  the  opportunity,  too,  of  knowing  local  condi- 
tions better  than  even  the  retailer  himself  can  know  them. 
Besides  this,  he  knows  internal  store  conditions — the  pitfalls  of 
business,  and  the  causes  of  failure.  And  if  he  has  cultivated 
the  retailer  in  the  right  spirit,  he  can  warn  him  when  the  first 
signs  of  danger  appear. 

Many  times  a  close,  friendly  cooperation  of  this  sort  means 

(14) 


mutual  profit.  Not  only  is  the  creditor  himself  saved  from 
the  possibility  of  having  to  accept  from  thirty  to  sixty  cents 
on  the  dollar  in  lieu  of  the  full  amount  due  him;  but  further, 
it  leaves  the  customer  on  a  sound  basis.  And  the  latter  is,  for 
the  future,  a  better  friend  and  customer  than  ever. 

No  definite  rules  can  be  laid  down  for  handling  this  class  of 
business.  The  form  letter  is  usually  impractical,  for  each  case 
must  be  diplomatically  handled  with  a  full  knowledge  of  the 
standing,  reputation  and  record  of  the  customer.  The  letters 
given  in  this  pamphlet  are  not  intended  as  models  to  be  gen- 
erally followed,  but  they  may  point  out  certain  attitudes  that 
should  be  guarded  against  and  they  may  oiFer  some  suggestions 
as  to  diplomatic  methods  that  have  proved  successful  in  holding 
the  business  of  this  class  of  customers. 

Here  is  a  letter  from  a  type  foundry  to  one  of  its  delin- 
quent customers : 

Dear  Sir: 

We  are  in  receipt  of  your  favor  of  the  7th,  en- 
closing an  order  for  . 

On  referring  to  our  ledger  we  find  that  you  have 
a  long  overdue  account  on  our  ledger  amounting 
to  S54.76  and  we  are  surprised  that  you  should  send 
us  another  order  without  enclosing  a  draft  to  take 
care  of  this  old  debt . 

Of  course,  we  appreciate  your  business  and  aim 
to  be  very  liberal  in  our  terms.  You  must  admit  that 
we  have  been  exceedingly  lenient  in  your  case.  But 
it  is  not  businesslike  to  let  these  old  accounts 
accumulate  and  it  looks  to  us  as  if  it  would  be  to 
your  interest  just  the  same  as  it  is  to  ours  for 
you  to  take  care  of  this  obligation  at  once. 

You  must  understand  that  we  have  to  call  a  halt 
some  time  and  so  we  do  not  feel  warranted  in  filing 
this  last  order  until  you  send  us  a  remittance  cov- 
ering the  old  account.  We  hope  to  receive  a  check 
by  return  mail  and  we  will  then  fill  your  order 
of  the  9th. 

With  best  wishes  we  are, 

Very  sincerely  yours, 

Black  &  Black. 

This  letter  was  evidently  written  while  the  credit  man  was 

(15) 


"hot  under  the  collar,'*  but  it  is  not  unlike  hundreds  that  pass 
through  the  mails  every  day — letters  that  are  sadly  out  of  tune, 
letters  that  are  discordant  in  arguments  and  in  language.  If 
the  printer  had  some  important  job  requiring  material  that 
could  be  secured  only  from  this  particular  type  foundry,  he 
would  probably  hustle  around  and  scrape  up  the  money  to  settle 
the  old  account.  But  it  is  equally  probable  that  no  more  orders 
would  be  sent  to  a  house  that  handled  his  account  in  this 
manner. 

Even  though  he  may  have  been  negligent  about  his  bills,  the 
house  could  ill-afford  to  collect  the  account  at  the  expense  of 
his  good  will. 

A  new  credit  man  coming  to, this  foundry  had  a  broader 
grasp  of  the  functions  of  his  department,  and  in  handling  a 
similar  situation,  wrote: 

Dear  Sir: 

Your  letter  of  the  9th  accompanying  your  order 

for  has  just  been  received.   We  thank  you  for 

favoring  us  with  this  business. 

Do  you  realize  that  your  previous  account  for 
S34.76  is  now  overdue  nearly  three  months?  It  may 
have  been  overlooked,  although  your  attention  has 
been  called  to  it  several  times. 

We  are  at  all  times  willing  to  grant  our  printer 
friends  reasonable  accommodation,  but  when  we  allow 
them  to  keep  adding  new  accounts  without  offering  a 
settlement  of  their  old  obligations  we  feel  we 
are  doing  both  ourselves  and  the  customers  an 
injustice. 

Please  understand  that  we  appreciate  your  busi- 
ness very  much  and  we  try  to  merit  it  by  the  quality 
of  goods  we  sell  and  the  treatment  accorded  our 
customers. 

We  hope,  therefore,  that  you  will  send  us  your 
check  for  this  account  by  return  mail,  and  imme- 
diately upon  its  receipt  we  will  be  very  glad  to  give 
your  order  our  very  best  attention  and  ship  it  to 
you  promptly.        . 

We  trust  you  will  look  at  this  matter  in  the  sajne 
light  as  we  do  and  that  you  will  give  this  past  due 
account  your  immediate  attention. 

Very  truly  yours, 

Black  &  Black. 

(16) 


This  letter  is  diplomatic;  there  are  no  harsh  words,  no 
abuse.  And  yet  the  point  is  made  perfectly  clear  that  further 
credit  cannot  be  secured  until  the  old  obligation  has  been  wiped 
off  the  books. 

Throughout  the  letter  there  is  evidence  of  a  spirit  of  fair- 
ness that  will  reach  most  men  when  bluster  and  bullying  would 
have  no  effect.  The  delinquent  is  made  to  feel,  no  matter 
what  happens,  that  he  has  been  treated  courteously  and  fairly, 
and  the  house  retains  his  good  will. 

The  best  credit  man  is  not  the  one  who  has  the  smallest 
percentage  of  bad  accounts.  Every  house  establishes  the  per- 
centage of  loss  from  bad  debts  which  the  business  will  stand  and 
below  which  it  does  not  want  to  go.  So  the  good  credit  man 
puts  salesmanship  into  his  letters  and  thinks  not  only  of  keep- 
ing the  loss  from  bad  accounts  from  rising  above  the  estab- 
lished allowance,  but  also  of  increasing  the  volume  of  business 
that  his  house  is  doing.  He  looks  to  the  future  as  well  as  to 
the  past. 

Here  is  the  letter  sent  out  by  a  Chicago  wholesaler  to  a 
customer  on  w^hom  reports  had  not  been  satisfactory.  It  does 
not  tell  the  customer  bluntly  that  his  standing  is  not  satisfac- 
tory. A  sugar  coating  is  given  to  a  bitter  pill  by  assuring  him 
that  the  reports  "do  not  give  the  required  information,"  and  as 
an  inducement  to  secure  his  order  on  a  cash  basis,  a  special  dis- 
count is  offered: 

Dear  Sir: 

In  seeking  information  from  the  usual  outside 
channels,  for  basing  credit  for  you,  we  find  our  re- 
ports have  not  been  sufficient  in  detail  to  permit 
us  to  arrange  this  matter  on  an  equitable  basis. 
These  reports  all  speak  very  highly  of  you  in  a  per- 
sonal way,  but  do  not  give  us  the  required  infor- 
mation in  the  way  of  assets  as  compared  with 
liabilities  to  enable  us  to  arrive  at  such  a  credit 
basis  as  we  feel  you  unquestionably  are  entitled  to. 

We  assume  you  want  our  goods  for  your  early 
fall  trade.   It  is  imperative,  therefore,  that  we 
ship  immediately.   We  suggest  that  on  this  order 
you  arrange  to  favor  iis  with  draft,  in  consideration 
of  which  we  will  be  pleased  to  allow  you  a  special 
discount  of  3%.  Bear  in  mind  that  we  suggest  these 
terms  only  on  this  first  order.,  as  we  feel  confident 
we  can  easily  arrange  a  credit  basis  for  all  future 

(17) 


shipments  we  are  positive  you  will  need  in  our 
line. 

We  sincerely  trust  you  will  take  no  personal 
exception  to  our  above  suggestion,  which  we  have 
made  in  your  interest  solely. 

Thanking  you  for  the  kindness  of  an  immediate 
and,  we  trust,  favorable  reply,  we  are. 

Yours  very  truly. 

Brown  &  Co. 

While  the  merchant  who  received  the  letter  was  probably 
disappointed,  there  was  nothing  about  it  to  oiFend  him  and  he 
could  have  nothing  but  respect  for  the  house  that  conducted 
its  affairs  on  such  a  courteous,  yet  businesslike  basis.  Asking 
a  delinquent  for  money  can  be  just  as  dignified  and  courteous 
as  trying  to  sell  him  goods — and  it  keeps  the  customer  in  a 
friendly  attitude.  A  "grouchy"  credit  man  may,  in  one  letter, 
lose  to  a  house  a  business  it  had  been  years  in  developing. 

Here  is  the  letter  from  another  wholesale  house  to  a  customer 
who  had  been  allowed  a  small  line  of  credit  but  who  had  fallen 
behind  in  his  payments : 

Dear  Sir: 

After  careful  consideration  of  your  recent  let- 
ter we  are  sorry  to  inform  you  that  we  have  decided 
to  hold  back  the  order.   We  regret  this,  I  assure 
you,  quite  as  much  as  you  do,  but  our  unalterable  rule 
of  business  in  this  regard  leaves  us  no  alternative. 

We  do  not  in  the  least  like  to  lose  your  account, 
and  we  sincerely  trust  we  may,  in  the  near  future, 
come  to  some  agreeable  understanding. 

It  is  to  be  hoped  that  you  will  soon  dispose 
of  the  property  you  mentioned  in  your  last  letter, 
and  that  its  sale  will  enable  you  to  clear  up  the 
outstanding  balances  against  you. 

Our  action  with  regard  to  your  case  is  to  be 
especially  regretted,  owing  to  the  lateness  of  the 
year;  we  still  feel  you  would  be  best  served  if  you 
sent  us  your  remittance  of  $200,  and  let  the  ship- 
ment go  forward.  We  say  this  in  all  earnestness, 
as  we  know  what  it  means  to  go  into  the  open  market 
at  this  time  to  buy  Christmas  goods. 

Should  we  not  hear  from  you  by  next  Thursday  by 
wire  or  mail  we  will  have  to  unpack  your  shipment  and 
place  back  in  stock,  as  it  is  taking  up  valuable 
space . 

Very  truly  yours, 

Anderson  &  Anderson. 
(18) 


This  is  in  reality  a  collection  letter  aimed  primarily  "to  get 
the  money"  by  deftly  suggesting  to  the  merchant  how  hard  it 
would  be  for  him  to  go  into  the  open  market  to  buy  Christmas 
goods,  and  the  fact  is  driven  home  that  he  cannot  hope  to  have 
his  order  filled  without  a  substantial  payment  on  account  for 
he  is  assured  that  the  shipment  will  be  unpacked  unless  he  is 
heard  from  by  a  specified  time.  This  letter  is  a  shrewd  blending 
of  collecting  and  selling,  and  while  it  may  hurt,  it  gives  the 
sometimes  necessary  prod  to  an  easygoing  merchant,  that  he 
cannot  expect  continued  credit  unless  he  looks  more  diligently 
to  the  payment  of  his  bills. 

A  wholesale  house  was  unable  to  secure  the  required  in- 
formation regarding  a  new  merchant  and  wrote  him  this  letter : 

Dear  Sir: 

Concerning  your  valued  order,  we  find  it  best 
to  write  you  directly  relative  to  it  in  order  that 
we  may^  arrange  the  matter  of  credit  terms  to  your 
best  advantage. 

We  have  experienced  a  little  trouble  in  secur- 
ing definite  information  for  basing  credit.   But, 
after  all,  this  is  a  matter  which  concerns  us  alone 
•  and  we  would  much  rather  secure  the  necessary 
information  direct  from  you  than  from  outside 
sources.  Our  experience  in  the  past  has  been  that 
when  we  have  gathered  information  through  outside 
channels,  very  frequently  it  does  a  merchant  a 
serious  injustice  and  it  is  therefore  always  our 
preference  to  go  direct  for  the  facts  we  need. 

We  enclose  a  statement  and  will  appreciate  it 
very  much  if  you  will  fill  this  out  so  we  can  deter- 
mine upon  a  credit  basis  from  the  facts  you  submit. 
It  is  understood,  of  course,  that  this  statement 
is  to  be  held  strictly  confidential  and  used  only  by 
ourselves. 

The  particular  class  of  goods  which  your  order 
calls  for  has  proved  one  of  the  most  popular  lines 
that  we  are  showing  this  fall.   You  will  find  an 
immediate  demand  for  it  and  one  that  will  prove  very 
profitable  for  you. 

We  will  appreciate  an  early  reply,  with  state- 
ment properly  filled  out  in  detail,  and  immediately 
on  receipt  the  order  will  have  our  preferred  atten- 
tion. 

Very  truly  yours. 

Brown  &  Co. 
(19) 


This  is  a  diplomatic  letter,  for  it  cleverly  suggests  to  the 
merchant  that  the  house  is  doing  him  a  favor  in  sending  directly 
to  him  for  information,  thus  avoiding  the  injustice  that  might 
follow  from  incomplete  outside  information.  And  then  the 
fourth  paragraph  brings  in  the  selling  talk  intended  to  stimu- 
late the  desire  of  the  merchant  to  have  his  order  filled  promptly. 

SOMETIMES  A  LETTER  LIKE  XmS  IS  HELPFUL  WHEN 
CUSTOMERS  LACK  SATISFACTORY  RATINGS 

A  large  grocery  house,  on  receiving  an  unsatisfactory  report 
from  the  mercantile  agencies,  wrote  this  letter  to  a  would-be 
customer : 

Dear  Sir: 

We  have  studied  the  data  regarding  your  financial 
condition  and  unless  there  is  some  mistake  in  the 
information  furnished  us  it  would  appear  that  your 
capital  is  not  large  enough  to  justify  us  in  letting 
your  order  go  forward  on  our  regular  terms. 

Your  reputation  is  well  vouched  for  and  on  the 
score  of  your  good  intentions  we  are  quite  satisfied, 
but  it  is  positively  necessary  in  such  instances 
that  your  assets  be  such  as  would  assure  us  that  you 
could  take  care  of  maturing  accounts;  it  is  not  so 
.'  much  a  question  of  whether  a  dealer  will  pay  a  bill 
as  whether  he  can  pay  it. 

It  is  not  at  all  improbable  that  the  data  we  have 
is  incorrect  and  therefore  we  enclose  a  blank  form 
which  we  will  ask  you  to  fill  in  and  mail  us  together 
with  the  names  of  a  few  houses  you  have  had  deal- 
ings with. 

If  agreeable  to  you,  please  deduct  2%   cash  dis- 
count and  include  remittance  with  your  reply,  and 
further  delay  on  your  order  will  be  unnecessary  -- 
the  shipment  will  then  go  forward  at  once. 

Very  truly  yours, 

Anderson  &  Anderson. 

Such  a  letter  is  severe  but  in  some  cases  necessary,  especially 
perhaps,  with  well-ineaning  but  inexperienced  men  who  may  be 
entering  the  mercantile  field  with  a  limited  capital  and  every- 
thing about  the  business  to  learn.  The  third  paragraph  affords 
a  little  balm  for  the  sting,  by  the  suggestion  that  the  informa- 
tion secured  may  be  incorrect. 

(20) 


Some  firms  depend  upon  the  "hard-up"  argument  for  mak- 
ing collections  and  it  is  frequently  the  refuge  behind  which  a 
credit  man  tries  to  hide  his  real  motive  for  denying  credit — a 
false  position  that  deceives  no  one.  Here  is  an  example  of 
such  a  letter : 

Dear  Sir: 

Since  your  visit  at  our  office  a  few  weeks  ago, 
we  have  been  pleased  to  receive  an  order  from  you 
amounting  to  $475.00.  We  want  to  assure  you  of  our 
appreciation. 

You  are  undoubtedly  wise  in  putting  in  a  good 
substantial  list  of  dry  goods  for  the  fall  and  winter 
tradQ,  and  we  trust  that  you  will  dispose  of  it 
quite  readily. 

We  are  anxious  to  ship  you  this  order  as  soon 
as  possible,  but  as  we  have  several  very  large  debts 
to  meet  in  the  near  future  we  are  desirous  of  doing 
business  on  a  cash  basis,  hence  we  would  feel  es- 
pecially gratified  if  you  would  do  your  best  to  favor 
us  with  your  check  for  the  order,  less  2%  discount. 

We  are  asking  this  favor  of  all  our  customers 
and  we  trust  that  you  will  not  feel  that  we  are  mak- 
ing an  exception  in  your  case.  Rest  assured  that 
such  is  not  the  case.  It  is  our  financial  need 
that  makes  it  urgent  that  we  pursue  this  policy  for 
some  time  to  come. 

Trusting  you  will  strive  to  comply  with  our 
suggestions  we  beg  to  remain, 

Very  truly  yours, 

Louis  &  Frank. 

While  it  may  be  true  that  the  company  had  large  debts  to 
meet  and  really  needed  the  cash,  yet  the  letter  was  sent  out 
by  one  of  the  oldest  and  largest  dry  goods  houses  in  the  country 
and  it  is  doubtful  if  its  statements  were  believed.  The  assur- 
ance that  this  same  request  was  being  made  to  all  its  old  cus- 
tomers is  equally  preposterous,  and  the  merchant  who  received 
such  a  letter  could  not  help  feeling,  perhaps,  that  the  house  was 
not  treating  him  honestly.  Even  an  inexperienced  dealer  is  not 
so  easily  f ooled ;  a  f rank,  businesslike  statement  that  his  credit 
is  not  acceptable  will  always  prove  a  surer  method  of  bringing 
forth  a  check  and  it  always  commands  the  respect  of  the  cus- 
tomer. 

(21) 


Much  more  effective  is  the  letter  that  tries  to  get  the  cash 
with  the  order  by  pointing  out  to  the  customer  why  it  is  to  his 
advantage  to  buy  on  the  cash  basis.  One  credit  man  cleverly 
points  out  how  the  three  per  cent  discount  for  cash  is  just  the 
same  as  making  an  additional  three  per  cent  profit  on  his 
goods  and  receiving  this  profit  in  cash  before  one  of  the  articles 
is  sold. 

Another  firm  has  an  array  of  figures  to  show  how  seldom 
merchants  fail  who  buy  for  cash  and  keep  up  their  own  col- 
lections. 

"It  is  not  that  we  hesitate  about  extending 
credit  but  we  always  take  occasion  to  advise  dealers 
to  stick  to  the  cash  policy  as  much  as  possible." 

This  sentence  rings  true  in  the  credit  letter  because  the  firm 
goes  on  to  give  specific  reasons  why  such  a  policy  is  to  the  mer- 
chant's advantage.  The  firm  does  not  shake  confidence  in  its 
own  management  by  the  cry  of  needing  money.  The  letter  is 
dignified  and  businesslike.  It  carries  conviction  because  the 
reasons  are  logical  and  "good  business." 

And  then  there  are  credit  men  who  talk  to  young  business 
men  in  a  heart-to-heart  manner,  telling  them  that  they  are 
willing  to  extend  the  credit  but  it  has  been  their  experience 
that  it  is  advisable  for  merchants  to  go  slow  until  they  get  estab- 
lished and  to  order  in  small  quantities  until  they  are  thoroughly 
familiar  with  the  needs  of  the  field. 

A  firm  in  Chicago  manufacturing  physicians'  and  hospital 

supplies  writes  in  a  similar  way  to  young  doctors  who  have 

sent  in  their  first  order : 

ft 
Dear  Sir: 

It  is  a  pleasure  to  inform  you  that  the  replies 
received  from  the  persons  whom  you  gave  us  as  ref- 
erences as  to  your  personal  standing  and  integrity 
are  very  satisfactory  and  we  have  accepted  your 
order  on  the  terms  outlined  in  our  previous  corre- 
spondence . 

We  notice,  however,  in  looking  over  your  list, 
a  number  of  articles  for  which  we  believe  you  will 
have  no  immediate  need  --in  fact,  some  of  the 
instruments  are  used  only  for  special  operations  and 
are  likely  to  remain  in  your  case  for  many  months 
before  you  will  have  use  for  them. 


As  our  experience  of  over  30  years  in  equipping 
physicians  has  taught  us  that  the  financial  returns 
of  a  young  physician  starting  out  in  practice  are 
not  always  as  rapid  as  he  may  anticipate  we  would 
suggest  the  omission  of  the  instruments  we  have 
enumerated  below.   If  occasion  should  arise  for  im- 
mediate need  of  any  of  these  instruments  they  can 
be  supplied  by  telegraph,  order  within  a  few  hours. 

By  reducing  the  amount  of  the  order  you  will 
also  reduce  the  amount  of  the  payments,  enabling 
you  to  put  aside  a  surplus  which  may  be  of  con- 
siderable advantage  in  case  of  emergency. 

We  trust  that  our  suggestion  will  be  taken  in 
good  part,  and  in  the  interval,  awaiting  your  in- 
structions, we  will  have  your  order  made  ready  for 
shipment  so  that  there  may  be  no  unnecessary  delay. 

Very  truly  yours, 

Mitchell  Bros. 

No  one  could  ordinarily  take  offense  at  this  attitude  and 
there  is  something  about  the  letter  that  shows  a  genuine  interest 
on  the  part  of  the  firm.  The  doctor  really  feels  that  the  house 
is  giving  him  good  advice,  is  looking  to  his  interests  as  well  as 
to  its  own  and  so  the  order  is  cut  down  and  it  is  done  in  such  a 
way  that  it  increases  the  good  will  of  the  customer. 

SOME  INTERESTING  METHODS  FOR  HANDLING  THE  CUS- 
TOMER WHO  IS  INCLINED  TO  OVERBUY 

One  of  the  every-day  experiences  of  the  credit  man  is  to 
pass  on  orders  from  customers  who  are  inclined  to  stretch  their 
credit  accommodations.  The  trick  is  to  induce  the  customer  to 
reduce  the  size  of  his  order  without  offending  him. 

Here  is  the  way  a  wholesale  grocery  house  bluntly  handles 
this  class  of  business : 

"We  are  not  satisfied  with  the  replies  regarding 
your  standing.   The  total  amount  of  your  order 
would  not  warrant  us  in  running  any  risk.  If  you  are 
disposed  to  pay  us  on  account,  half  the  invoice,. 
S48.30,  and  promise  to  remit  the  balance  in  the  usual 
thirty  days,  we  will  send  on  the  goods  as  quickly 
as  possible." 

Here  is  the  diplomatic  way  in  which  a  rival  concern  per- 
suades the  customer  to  reduce  his  order : 

(23) 


Dear  Sir: 

Your  order  for  goods  received.   We  are  quite 
pleased  to  hear  from  your  part  of  the  country,  and 
we  trust  that  business  is  on  the  upward  trend  in 
Streator. 

Your  intention  to  put  in  a  stock  of  flour  for 
winter  trade  is  good  policy,  but  the  brand  you  order 
is  not  one  that  we  feel  will  be  an  Al  seller  in 
Streator.   It  is,  of  course,  possible  that  you  may 
be  able  to  dispose  of  the  entire  order  within  a  few 
months,  but  our  past  experience  teaches  us  that  it 
is  always  best  for  a  dealer  to  go  slow  on  a  new 
brand  of  flour. 

Instead  of  sending  you  a  $300.00  order,  we  feel 
that  it  will  be  to  your  advantage  to  try  $100. 00 
worth  of  the  flour  first,  and  see  how  it  sells.  After 
that  you  will  be  in  a  position  to  know  positively 
whether  this  brand  will  be  an  asset  or  a  dead  bur- 
den on  your  hands.  We  never  like  to  send  any  dealer 
a  bill  of  goods  that  we  think  will  not  come  up  to 
his  expectations  as  a  seller. 

A  large  demand  has  been  created  for  this  brand 
in  some  sections,  but  in  your  section  this  demand 
has  not  been  fully  developed. 
Very  truly  yours, 

L.  W.  Hamilton, 

County  Credit  Department. 

After  reading  this  letter  the  merchant  feels  like  thanking 
the  wholesale  house  for  giving  him  such  good  advice  and  look- 
ing after  his  interests  by  cautioning  him  not  to  tie  up  his  capital 
in  an  unsalable  line. 

A  credit  man  who  tried  to  combine  a  collection  and  selling 
letter,  wrote  to  a  comparatively  new  customer: 

"We  are  in  receipt  of  your  valued  order  given 
our  representative,  Mr.  Haimnond,  and  we  wish  to  thank 
you.      Our  business  relations  during   our   acquaint- 
ance have  been  very  pleasant  and  we  trust  have  been 
profitable  to  both  buyer  and  seller.     We  note  that 
the  remittance  for  your  last  purchase   --  $288.89  -- 
is  10  days  past  due  --a  condition  for  which  we  are 
at  a  loss  to  account  --  perhaps  an  oversight  on 
your  part. 

"Before  shipping  this  large  order  --  S978.30  -- 
we  should  take  occasion  to  suggest  that  you  oblige 
us  by  reducing  the  order  to  half  the  amount,   owing 
to  the  fact  that  we  have  had  a  very  heavy  demand 

m 


on  the  line  of  goods  you  call  for,  and  we  fear  that 
we  will  run  short  before  we  can  replenish  our  stock. 
We  have  asked  others  to  act  on  this  suggestion 
which  is  simply  a  course  followed  by  every  live  and 
prosperous  business  house." 

The  letter  does  not  ring  true;  it  has  a  hollow  sound  that 
does  not  fool  the  buyer.  The  reference  to  the  past-due  account 
and  the  request  to  reduce  the  order  by  half  are  so  closely  con- 
nected that  the  thought  in  the  credit  man's  mind  is  apparent 
and  the  reader  is  not  convinced  that  the  old  customers  have 
been  asked  to  reduce  their  orders  on  the  same  line  of  goods. 

But  here  is  a  credit  man  facing  an  identical  situation  who 
succeeded  in  having  the  order  reduced  without  giving  oflfense. 

Dear  Sir: 

We  thank  you  for  your  order  for  semiporcelain 
ware,  amounting  to  $500.   This  line  has  proven  so 
exceptionally  popular  this  season  that  it  has  been 
practically  impossible  for  us  to  fill  the  demand 
in  our  usual  prompt  way. 

It  will  be  appreciated,  Mr.  Roe,  as  a  special 
favor  on  your  part  if  you  will  permit  us  to  reduce 
this  order  to  $200  for  immediate  shipment.  We  are 
asking  this  favor  from  other  customers  in  order  that 
we  may  let  all  share  in  the  popular  demand  for  this 
very  excellent  line. 

We  will  hold  the  balance  of  your  order  on 
special  file  and  would  be  pleased  to  receive  your 
order  for  more  of  the  line  at  any  later  date  that  you 
may  be  in  need  of  it.  Let  us  assure  you  that  we  will 
appreciate  very  sincerely  your  accommodating  us  in 
this  matter  and  regret  that  the  demand  for  the 
line  necessitates  our  asking  the  favor  of  you. 

Awaiting  your  very  prompt  reply  and  assuring  you 
that  on  receipt  of  it  the  order  will  go  forward 
immediately,  we  are. 

Very  truly  yours, 

Brown  &  Co. 

An  exceedingly  diplomatic*  turn-down  is  used  by  a  New 
York  house  to  a  would-be  credit  customer: 

Dear  Sir: 

Some  time  ago  the  management  enforced  upon  our 
sales  department  a  rule  that  all  orders  should  be 
accompanied  by  cash,  unless  the  account  had  been 
previously  passed  upon  by  our  credit  department, 

(25) 


This  opening  is  more  than  a  clever  turndown;  it  is  a  skil- 
ful sales  argument  as  well.  It  takes  off  the  personal  affront 
of  the  refusal,  and  indulges  in  a  little  confidence  with  the  cus- 
tomer that  has  the  human  ring.  Any  small  confidence  of  this 
kind  is  alwaj^s  a  good  thing. 

If  it  were  the  function  of  the  credit  man  to  keep  up  collec- 
tions and  hold  his  bad  accounts  down  to  the  minimum,  his  task 
would  be  easy.  It  would  be  very  simple  to  refuse  sales  to 
everyone  except  the  merchants  who  are  known  to  be  "good 
pay."  But  the  house  wants  to  increase  its  business  and  too 
strict  a  policy  on  the  part  of  the  credit  man  invariably  means  a 
loss  of  customers.  So  every  house  fixes  the  percentage  of  bad 
accounts  the  business  will  stand  for  and  the  credit  man  is  wise 
who  keeps  close  to  this  line.  If  he  falls  below  the  fixed  per 
cent  the  management  may  complain  to  him  that  he  is  too  strict, 
driving  business  aw^ay,  and  this  is  sometimes  just  as  bad  as  it  is 
to  let  down  the  bars  and  let  in  too  many  bad  accounts. 

So  the  problem  of  the  credit  man  is  to  deal  diplomatically 
with  the  questionable  customers;  get  their  business  on  a  cash 
basis  if  possible;  but  if  he  cannot,  point  out  to  them  how  it  is 
to  their  advantage  to  reduce  their  orders  to  a  level  consistent 
with  the  demands  of  their  trade — orders  that  the  house  will  be 
glad  to  fill.  He  must  have  an  eye  to  salesmanship  and  to  col- 
lections and  write  letters  that  will  secure  the  maximum  of  busi- 
ness at  the  minimum  loss;  he  must  be,  first  and  always,  a 
diplomat. 

If  the  question,  '*What  is  a  hundred-per-cent-efficient  col- 
lection manager?"  were  asked,  the  answers  would  probably  be 
as  follows : 

Board  of  Directors:  "One  who  collects  one  hundred  per 
cent  of  the  indebtedness  shown  on  the  books." 

President:  "One  who  collects  from  one  hundred  per  cent 
of  those  who  can  pay." 

Sales  Manager:  "One  who  collects  without  killing  future 
business." 

Salesman:    "One  who  forgets  overdue  accounts." 

Here  is  the  really  correct  answer: 

"One  who  collects,  yet  creates  good  will  and  paves  the  way 
to  greater  yearly  sales  by  making  a  purchaser  into  a  better 
customer," 

(26) 


One  company *s  terms  are:  one  hundred  and  twenty  days, 
date  of  invoice,  three  per  cent,  thirty  days.  The  practice  fol- 
lowed in  collections  was  the  usual  one  of  attaching  to  statements 
a  slip  notifying  the  customer  of  the  total  of  invoices  falling 
due  during  the  month  and  advising  that  a  draft  for  that  amount 
would  be  forwarded  on  the  day  specified  unless  a  remittance 
covering  the  bill  was  previously  received. 

Where  the  draft  was  returned,  form  letters  of  the  accepted 
type  were  used;  the  account  was  placed  in  an  attorney's  hands 
in  case  the  mail  attack  produced  no  answer.  Any  account 
collected  by  attorney  w^as  sold  only  for  cash  in  advance  there- 
after. The  letters  were  tactfully  drawn  up  and  the  procedure 
logical.  The  debtor  had  ample  chance  to  put  forward  any 
complaint  or  explanation  before  steps  were  taken  toward  col- 
lection through  a  third  party. 

The  losses  by  this  method  were  small,  not  exceeding  three 
quarters  of  one  per  cent.  The  percentage  of  cases  reaching 
attorney's  hands  was  less  than  two  per  cent  of  the  accounts  on 
the  books.  Furthermore,  this  two  per  cent  included  all  failures, 
crooks  and  "long  shots"  taken  where  need  of  representation 
was  great. 

As  a  result,  however,  of  an  investigation  extending  over 
a  number  of  years,  their  whole  policy  on  collections  has  been 
changed  and  the  past  two  years'  experience  with  the  new  policy 
fully  justifies  the  change.  The  old  "notice  of  draft"  attached 
to  statements  formerly  read : 

Our  terms  of  sales  are  120  days  net.     Not  hear- 
ing from  you  we  will  draw  at  sight  for 

on covering  items  then  due. 

The  new  form  reads: 

In  case  you  desire  to  pay  by  draft  on  presenta- 
tion,  no  notice  is  needed.      If  we  do  not  hear  from 

you  by ,  you  will  receive  draft  for  S » 

covering  the  first   items  on  the  attached 

statement. 

Below  is  a  convenient  sticker  for  your  diary. 

Consolidated  Paint  Co. 

Date Amount 

(27) 


When  drafts  are  returned  unpaid,  the  first  step  is  no  longer 
to  mail  out  a  form  letter,  but  to  secure  the  latest  credit 
report,  sending  for  new  reports  where  those  on  file  are  over  six 
months  old.  These,  together  with  the  history  records,  are 
studied  in  order  to  produce  a  real  letter  which  will  collect 
instead  of  a  form  which  is  only  a  reminder. 

When  this  type  of  letter  fails  to  bring  a  prompt  settlement, 
the  tack  is  changed  entirely.  Nor  is  this  second  letter  an 
assumption  of  the  "loss  in  the  mails",  of  my  first  letter.  This 
typical  second  effort  will  show  the  new  slant : 

We  want  more  of  your  business  because  we  feel 
that  you  will  make  greater  profits  from  a  wider  vari- 
ety of  Consolidated  products.      That  means  that 
you'll  have  more  reason  to  give  them  the  best  posi- 
tion in  your  store  and  in  the  best"  seasons  feature 
them  in  your  windows. 

There's  only  one  thing  in  the  way.     That's  your 
unwillingness  to  order  again  until  you  have  balanced 
up  the  132.16,    shown  by  the  attached  statement. 
We've  been  supplying  you  for  several  years  --  six, 
to  be  exact   --  and  we'll   tell  you  frankly  that  the 
$32.16  isn't  in  the  way  so  far  as  we  are  concerned. 

Send  in  your  order  and  give  us  a  definite  date 
when  the   item  in  question  will  be  met,    and  the  new 
goods  will  be  earning  profits  for  you. 

For  an  example  of  the  most  effective  letter  for  many  cases 
where  no  response  has  been  made  to  two  letters  following  re- 
fused draft,  this  one  to  a  customer  rated  20,000-30,000,  2nd 
credit,  brings  out  an  interesting  suggestion: 

For  150  days  we've  been  with  you  in  the  form  of 
your  order  of  25th.   We  should  have  brought  you 
in  profits  enough  to  more  than  cover  the  paint  cost 
to  you  of  S183.27. 

If  we  haven't,  let's  get  together  now  --  not  a 
month  later,  when  you  wonder  why  we  won't  be  patient 
and  we  wonder  why  you  aren't  ordering  as  you  used 
to. 

Have  a  clerk  check  up  your  stock  of  Consolidated 
with  the  invoice  we  attach,  and  let's  find  out 
whether  we  owe  you  a  lot  of  help  in  moving  the  goods 
or  whether  you  overlooked  the  profits  our  150  days 
.  with  you  have  brought  in. 

(28) 


If  the  customer  does  not  answer,  the  next  step  is  to  wait 
for  the  salesman's  comments  (which  must  be  made  on  the  form 
attached  to  the  carbon  sent  him) .  When  this  comes  in,  a  final 
letter  is  dispatched  like  this  one  to  a  small  dealer  in  Oakland: 

There  can  be  only  three  reasons  why  our  letters 
of  the  15th  and  28th  of  July  and  the  16th  of  August 
did  not  result  in  a  new  order  or  remittance. 

1.  We  didn't  make  clear  that  your  order  of  the 
5th  of  April  had  become  overdue. 

2.  You  have  some  complaint  which  you  are  waiting 
to  make. 

3.  Your  financial  arrangements  have  been  such 
that  you  have  delayed. 

We  are  remedying  the  first  by  drawing  again  at 
sight,  the  second  by  enclosing  a  stamped  envelope, 
and  if  it  is  the  third,  isn't  it  fair  to  both  of  us 
to  balance  the  old  account  or  give  us  a  definite  date 
and  reason  for  delay? 

In  our  years  of  close  friendship  with  hardware 
dealers  they  have  often  come  to  us  with  their  prob- 
lems of  financing,  selling,  and  their  own  credit 
and  collection  troubles.  From  our  salesmen  and  our 
branch  houses  we  have  learned  a  lot  of  helpful  things 
we  are  glad  to  pass  along. 

Can't  we  get  together  now  before  we  have  to  ask 
someone  in  your  town  to  present  our  request  for 
payment?  We'd  a  lot  rather,  and  think  that  you 
would. 

Here's  a  fifth  letter — and  after  it  its  reason  and  its  results: 

If  you  were  within  easy  car-ride,  we'd  drop 
over  to  find  out  why  our  several  letters  haven't 
been  answered. 

We  can't,  because  the  distance  prevents.   Our 
acquaintance  in  Buffalo  does  not  include  anyone  you 
know  who  could  act  for  us,  so  we're  forced  to  send 
a  statement  of  your  account  and  copies  of  our  let- 
ters to  Smith  &  Smith,  the  attorneys,  in  order 
to  learn  your  wishes. 

This  isn't  anything  more  than  the  only  way  we 
see  to  find  out  just  what  the  trouble  is  and  remedy 
it  if  we're  at  fault. 

We  want  to  sell  you  Consolidated  paints  for 
years  to  come  --  but  it  takes  the  two  of  us  to  make 
it  possible. 


(29) 


A  wire  will  cause  us  to  wire  Smith  &  Smith  to 
return  our  letter  unopened.      Isn't   it  worth  giving 
the  matter  that  attention? 

The  reason  is,  "Don't  try  four  times  in  a  friendly  mood  to 
hold  a  customer  in  line,  and  then  get  mad  and  "show  him." 

The  results  are:  "The  friendship  of  men  who  can  make 
profits  for  you.  Copartners,  if  you  wish  to  correctly  term 
them.  The  man  who  sees  that  even  in  the  last  extremity  you 
have  arranged  so  that  he  can  save  himself  from  having  his 
indebtedness  known  in  Ms  home  town  is  either  in  need  of  a 
receiver  or  an  alienist  if  he  fails  to  cash  in  on  your  offer." 

Often  a  returned  draft  has  paved  the  way  for  this  com- 
pany's selling  organization  to  get  behind  a  merchant's  busi- 
ness and  give  it  a  lift  and  in  this  wiay  the  company  makes 
friends  who  are  anxious  to  repay  and  glad  of  the  opportunity 
it  always  endeavors  to  arrange. 

The  whole  essence  of  this  company's  collection  policy  is  in 
this  letter: 

No  firm  is  ashamed  to  ask  a  man  to  buy  some- 
thing worthy  of  his  brand.     No  man  should  be  ashamed 
to  ask  for  his  share  of  the  profits  on  a  dealer's 
sales  of  his  product.     No  firm  but  is  ashamed  when 
one  of  its   representatives  shows  anger  when  he 
fails  to  make  a  sale.      No  firm  should  fail   to  be 
ashamed  of  any  representative  who   indicates   anger 
at  failure  to  msike  a  collection. 

All  our  collection  efforts  aim  at  a  continuance 
of  the  business  relation,   because  we   like   friends 
and  like  profits. 

And  that,  after  all,  is  the  whole  story. 

No  business  can  operate  without  complaints  and  the 
shrewd  office  manager  aims  to  handle  them  promptly,  satis- 
factorily and  economically.  The  majority  of  complaints  fall 
into  definite  groups  and  many  houses  have  fixed  policies  for 
handling  them.  Regardless  of  the  system  adopted,  the  cus- 
tomer must  be  appeased  and  this  must  be  accomplished  quickly 
and  at  small  expense  to  the  house.  Some  concerns  make  an 
immediate  adjustment  and  then  start  an  investigation  to  dis- 
cover the  source  of  the  trouble ;  others,  handling  special  prod- 
ucts,   investigate  before  making  an  adjustment. 

(30) 


There  is  a  certain  class  of  houses  that  lose  all  interest  in  a 
sale  as  soon  as  the  customer's  money  is  received.  But  nearly 
every  successful  concern  has  adopted  this  policy  sooner  or  later; 
no  transaction  is  completed  until  the  man  who  spends  his  money 
is  satisfied.  A  dissatisfied  customer  is  a  serious  menace;  he 
makes  it  a  point  to  drive  business  away — ^he  is  the  danger 
signal  standing  between  the  house  and  future  sales. 

Usually  it  is  a  far  better  investment  to  satisfy  one  old 
customer's  claim  than  to  spend  the  same  amount  of  money  locat- 
ing new  prospects.  And  it  is  a  better  advertisement,  for  the 
assurance  that  a  house  stands  back  of  its  goods  is  a  powerful 
magnet  in  pulling  orders.  The  adjustment  of  a  grievance 
invariably  leads  to  more  orders;  it  puts  "boosters"  into  the 
field. 

When  the  average  customer  makes  a  complaint,  it  is  of 
vital  importance  to  him ;  if  he  holds  a  grievance,  it  is  a  serious 
matter.  He  may  be  to  blame ;  you  may  have  been  negligent,  or 
a  third  party  may  have  been  responsible,  but  no  matter  where 
the  fault  lies  the  customer  wants  immediate  consideration. 

While  some  complaints  are  certain  to  come  from  unreason- 
able persons,  the  percentage  is  so  small  with  the  average 
business  that  they  can  hardly  be  considered  when  adopting  a 
uniform  house  policy  for  handling  dissatisfied  customers. 
Experience  shows  that  the  buyer  is  usually  an  exception  who 
cannot  be  reached  by  the  right  kind  of  a  letter. 

The  tactless  letter  which  says,  "Your  claim  is  altogether 
unreasonable  and  could  not  be  conceded,"  will  only  aggravate 
woimded  feelings.  Bluntness,  indifference  and  intolerance 
are  like  so  many  slaps  in  the  face. 

But  on  the  other  hand,  if  the  angry  customer  gets  a  reply 
of  this  kind,  "We  are  very  glad  to  take  this  matter  up  and 
assure  you  that  any  mistake  will  be  adjusted  promptly  and 
satisfactorily,"  it  immediately  takes  the  edge  off  his  temper. 
A  spirit  of  fairness  and  a  "we'll  do  our  part"  makes  adjust- 
ment easy. 

It  is  necessary  to  the  satisfactory  settlement  of  a  complaint, 
to  reassure  the  claimant  immediately.  Promptness  in  replying 
is  the  first  essential.    If  a  customer  is  compelled  to  wait  for  a 

(31) 


reply,  his  grievance  grows  rapidly.  And  the  longer  the  delay 
the  more  difficult  becomes  the  adjustment. 

One  house  turns  the  complaint  letter  over  at  once  to  a 
special  department.  Letters  are  answered  on  a  regular  time 
schedule,  and  the  complaint  is  acknowledged  promptly,  even 
though  the  actual  adjustment  may  require  considerable  time. 

Obviously  the  same  methods  of  handling  complaints  are 
not  applicable  to  all  businesses  but  there  is  one  fundamental 
principle :  keep  the  complainant  in  good  humor  and  satisfy  him 
as  far  as  is  consistent  with  circumstances  and  house  policy. 

The  manner  of  settlement  depends  upon  whether  the  cause 
of  the  complaint  is  readily  traceable  or  whether  it  needs  care- 
ful investigation.  The  most  familiar  claims  come  under  a 
"routine  complaint"  classification,,  for  which  there  should  be  a 
definite  policy  of  settlement.  A  certain  number  of  these  com- 
plaints are  apparently  inevitable  and  can  be  handled  by  a 
routine  policy.  They  may  be  grouped  in  six  divisions :  delayed 
shipments,  goods  damaged  in  transit,  goods  not  as  ordered, 
goods  unsatisfactory,  shortage,  and  shipment  lost. 

If  the  remedy  for  any  of  these  difficulties  may  be  applied 
quickly,  form  letters  are  usually  most  economical  and  most 
convenient.  But  if  the  complaint  demands  any  particular 
treatment,  personally  dictated  letters  handled  only  by  corre- 
spondents trained  for  this  work  are  essential.  The  use  of  a 
form  letter  in  such  cases  would  merely  increase  the  irritation 
and  the  reply  of  a  tactless  letter  writer  would  only  make  things 
worse. 

In  the  handling  of  any  complaint,  whether  just  or  unreason- 
able, the  aim  is  to  settle  it  with  the  least  expense.  So  in  all 
letters  that  deal  with  complaints  the  underlying  principle  is  to 
appease  the  customer  quickly  and  at  a  small  cost,  and  at  the 
same  time  strengthen  the  bond  of  interest. 

To  get  the  mental  attitude  and  viewpoint  of  the  customer 
is  obviously  one  of  the  most  important  considerations.  Many 
complaint  correspondents  brush  aside  all  immediate  surround- 
ings and  imagine  themselves  sitting  in  the  customer's  chair  and 
in  his  own  mood. 

Every  correspondent  for  one  of  the  large  mail  order  houses 
has  before  him,  under  the  glass  desk  top,  a  card  that  reads: 

(32) 


"Instead  of  our  customers  seeing  us  from  in  front  of  a 
counter,  they  see  us  from  in  front  of  the  letters  you  write  to 
them. 

"Before  you  start  to  dictate  a  letter,  be  sure  you  have 
digested  the  customer's  or  prospective  customer's  letter. 
Whether  it  is  a  complaint  or  an  inquiry,  be  sure  you  have  put 
yourself  in  his  place  and  know  just  why  he  is  dissatisfied  or 
just  what  he  wishes  to  know. 

"Be  sure  you  answer  every  portion  of  his  complaint  or 
inquiry  in  language  he  will  understand.  If  you  do  not,  he  will 
either  have  to  write  us  again  or  send  his  business  to  some  other 
house. 

"And  do  not  pass  your  letter  to  the  mailing  desk  until  you 
have  again  read  his  letter  and  your  answer  to  it. 

"He  will  judge  the  house  by  your  letter." 

Then  these  four  questions  are  considered. 

First.    Has  the  complainant  any  just  cause  for  complaint? 

Second.  Is  he  writing  through  ignorance  of  some  condition 
or  circumstance  ? 

Third.  Is  anyone  in  this  office  either  wholly  or  partly  to 
blame  for  the  complaint  ? 

Fourth.    Is  he  trying  to  impose  on  us? 

Usually  these  questions,  if  put  honestly,  can  be  decided 
definitely,  yes  or  no.  And  they  are  applicable  to  practically 
every  business.  They  are  the  test  of  your  ability  to  write  a 
fair,  reasonable  letter.  If  the  customer  really  has  a  just  cause 
for  complaint,  he  must  be  handled  from  that  standpoint  alone. 
If  he  has  not,  the  proposition  is  more  difficult. 

One  house  finds  it  well  to  begin  all  letters,  whether  in 
answer  to  a  just  or  an  unjust  complaint,  in  one  of  these  ways: 

"We  are  sorry  you  have  been  subjected  to  any  annoyance ;" 
"We  understand  your  feelings  on  the  subject;"  "We  regret  that 
we  cannot  see  you  in  person  to  talk  the  matter  over."  The 
question  is  always  taken  up  from  the  customer's  standpoint, 
agreeing  with  him,  taking  the  fight  out  of  him  in  the  very 
first  sentences. 

"If  we  were  buying,"  is  the  attitude  of  these  letters,  "we 
should  no  doubt  feel  the  same  way." 

Get  at  the  complainant  in  the  beginning  and  secure  his 
attention  and  good  will  as  a  foimdation  for  what  you  hope  to 

(33) 


impress  upon  him  later.  This  is  the  secret  of  good  complaint- 
letter  handling,  just  as  it  is  of  good  salesmanship;  his  own 
interests,  not  yours,  is  the  shortest  route  to  the  desired  end. 
One  mark  of  the  skilful  correspondent  is  to  enter  into  the 
customer's  viewpoint  and  admit  at  the  start  not  necessarily  the 
justice  in  the  complaint  but  the  propriety  in  bringing  it  directly 
to  the  house.  This  will  usually  put  the  customer  in  the  right 
mood  for  the  explanation  that  follows  without  violating  any 
ethical  standards  or  without  putting  the  house  in  a  ridiculous 
attitude. 

If  a  complaint  is  unfair  to  the  house,  the  complaining  cus- 
tomer should  be  shown,  from  his  own  angle,  that  the  house  can- 
not concede  the  demands  without  jeopardizing  its  own  inter- 
ests and  the  interests  of  its  customers.  These  letters  might 
show  that  such  and  such  a  price  or  policy  would  mean  poorer 
qualities,  or  the  failure  of  some  vital  plan  for  the  actual  benefit 
of  the  customers,  or  unfair  discrimination  which  could  not  fail 
to  hurt  the  customer  in  the  end. 

Misunderstandings,  too,  are  usually  explained  most  suc- 
cessfully with  this  policy  of  putting  the  customer's  interests  in 
the  limelight.  There  is  always  some  twist  that  can  be  given 
to  an  argument  which  will  appeal  to  the  self-interest  and 
reason  of  the  buyer.  Then  this  attitude  makes  it  easier  to 
assume  a  more  rigid  adherence  to  a  settled  house  policy  and 
to  hold  a  tighter  rein  over  customers  where  this  is  necessary. 

The  tactless  letter  that  starts  out  by  telling  about  the  pre- 
cautions which  the  house  takes  to  guard  against  just  such  errors ; 
that  goes  on  at  length  describing  the  system  of  inspection,  pack- 
ing and  shipping;  that  intimates  that  the  customer  must  be 
misrepresenting  or  is  a  crank — ^and  then,  after  he  is  mad 
through  and  through,  winds  up  by  saying  that  if  the  goods  are 
returned  the  order  will  be  replaced,  is  unpolitic  in  the  extreme. 

If  it  is  the  intention  to  send  new  goods  or  refund  the  money, 
say  so  quickly — and  make  a  friend;  thank  the  customer  for 
calling  the  matter  to  your  attention,  and  then,  if  it  seems  desir- 
able, tell  about  the  rules  for  inspection  and  shipping,  instead 
of  insinuating  that  the  mistake  must  be  at  the  other  end  of  the 
line.  Admit  that  there  is  liability  of  error  in  the  best  arranged 
systems,  and  express  regret  that  such  a  slip  has  occurred. 

(34) 


If  the  policy  is  to  show  a  disposition  to  be  fair  and  yet  guard 
against  the  return  of  the  goods,  as  in  the  case  of  the  concern 
which  depends  more  upon  the  one-time  order  than  the  future 
reorders,  tactf  ulness  is  again  the  instrument  that  is  indispensa- 
ble. While  with  concerns  of  this  class  the  same  attitude  of 
interest  and  consideration  for  the  customer's  side  of  the  dif- 
ficulty is  found  essential,  the  purpose  of  the  adjustment  letter 
is  to  carry  the  impression  that  the  house  has  been  fair  and  aims 
never  to  deceive.  Here  the  whole  idea  is  to  persuade  the 
customer  to  keep  the  goods  and  at  the  same  time  make  him 
satisfied.  It  is  often  found  necessary  practically  to  resell  the 
goods  before  this  may  be  accomplished.  So  settlement  letters 
of  this  kind  are  frequently  made  educational,  always  bearing 
closely  upon  the  source  of  the  complaint.  When  dissatisfaction 
is  caused  through  an  incomplete  knowledge  before  the  sale 
of  the  exact  nature  of  the  goods,  an  educational  letter  creates 
a  new  desire. 

To  assume  in  these  cases  that  customers  are  always  right 
is  not  only  disastrous,  but  an  incentive  to  dishonesty  as  well. 

The  actual  investigation  and  adjustment  of  complaints  on 
big  sales  should  be  handled  by  a  house  representative  or  by  a 
disinterested  third  party.  One  house  that  has  established  an 
enviable  reputation  for  fairness  and  equality  in  adjustment 
matters,  immediately  upon  the  receipt  of  the  complaint,  mails 
a  letter  expressing  regret  that  there  is  cause  for  dissatisfaction, 
assures  an  immediate  investigation,  and  promises  an  early 
report.  This  first  letter  plays  for  time  and  aims  to  put  the 
customer  in  the  right  mental  attitude. 

Then,  if  the  customer  is  not  too  far  away,  a  representative 
is  sent  out  to  make  a  personal  investigation.  Otherwise  the 
services  of  a  local  attorney  are  secured  and  the  investigation 
made  through  him. 

If  this  investigation  shows  a  fault  in  the  articles  sold — some 
imperfection  for  which  the  house  is  to  blame — an  immediate 
allowance  is  granted  on  the  basis  of  the  amount  of  damage  in 
the  goods  or  the  inconvenience  incurred  by  the  customer,  or,  if 
unusable,  the  goods  are  replaced  or  the  purchase  price  refunded. 

In  case  a  transportation  company  is  at  fault,  the  customer  is 

(35) 


so  informed  and  every  assistance  possible  should  be  given  him  in 
secm'ing  satisfaction  for  his  inconvenience  or  loss. 

But  where  the  customer  is  at  fault,  or  where  the  claim  is 
obviously  unjust,  the  policy  adopted  depends  largely  upon 
whether  the  house,  for  the  sake  of  future  business,  can  afford 
to  assume  the  claim  or  stand  pat  on  its  rights  in*  the  case. 

Where  the  refusal  of  a  settlement  may  mean  a  big  loss  in 
future  business,  it  is  often  deemed  advisable  to  make  an  allow- 
ance, to  meet  the  customer  half  way,  or  to  cut  a  certain  percent- 
age from  the  bill  and  "charge  it  to  advertising."  But  the  letter 
granting  this  allowance  should  be  so  worded  as  to  ward  off 
any  impression  that  a  "kick"  will  always  be  followed  by  a 
shading  of  the  bill. 

If  a  claim  is  refused,  it  is  always  desirable  to  give  the 
customer  the  impression  that  the  house  cannot  consistently  con- 
cede his  demands.  This  letter  must  be  based  entirely  upon  the 
interests  of  the  customer,  and  be  made  so  reasonable  that  he 
will  be  convinced  of  its  fairness. 

By  calling  his  attention  to  the  position  of  the  house,  and 
then  showing  him  the  difference  between  its  established  policy 
and  his  position ;  by  showing  him  the  damage  the  granting  of 
his  demands  might  do  the  business ;  and  lastly,  by  thanking  him 
for  the  opportunity  of  making  an  explanation,  the  "rough 
edges"  are  smoothed  over  and  he  usually  remains  a  loyal 
customer. 

One  of  the  most  successful  mail  order  houses  of  the  country 
sums  up  its  attitude  in  handling  complaints  as  "promptness, 
absolute  truthfulness  and  unfaltering  courtesy."  Fixing 
responsibility  for  an  error  is  not  the  thing  that  concerns  the 
customer:  what  he  wants  is  the  prompt  assurance  that  his 
grievance  will  be  taken  care  of  in  a  spirit  of  fairness.  As  a 
matter  of  business  a  complaint  must  be  settled  equitably — as  a 
matter  of  future  trade,  it  must  be  settled  promptly  and  in  a 
way  that  will  leave  the  customer  in  the  right  frame  of  mind. 
The  actual  adjustment  is  frequently  a  costly  process ;  using  the 
right  attitude  costs  nothing  and  yet  it  may  be  the  most 
important  factor  of  all  in  reestablishing  good  will  and  in  secur- 
ing future  business. 

A  definite  policy  is  usually  followed  in  handling  all  routine 

(36) 


complaints.    For  delayed  shipment  complaints  one  house  finds 
a  form  letter  of  this  kind  most  effective : 

"We  are  sincerely  sorry  that  there  has  been 
delay  in  your  shipment  and  we  want  to  thank  you  for 
notifying  us  so  promptly.  At  the  same  time  please 
accept  our  assurance  of  an  immediate  investigation. 
We  will  trace  the  shipment  at  once.  Won't  you  tell 
us  if  you  are  at  any  immediate  inconvenience  as  the 
result  of  the  delay?" 

When  the  cause  of  the  delay  has  been  traced  no  time  is 
lost  in  notifying  the  customer.  In  case  the  fault  is  that  of 
the  house,  the  customer  is  told  so  frankly.  The  letter  asks 
if  he  can  use  the  goods  and  a  promise  of  better  service  is  made. 
If  the  customer  refuses  to  accept  this  proposition,  some  induce- 
ment is  frequently  offered,  but  if  he  still  refuses,  his  money 
is  immediately  returned. 

Even  though  the  difficulty  arises  from  no  fault  of  the  house, 
a  willingness  should  be  shown  to  assist  the  customer  in  every 
possible  way  in  getting  satisfaction  for  his  inconvenience  or  loss. 

It  is  a  common  experience  that  a  short,  snappy  letter,  even 
though  it  shows  a  warm  interest  in  the  affairs  of  the  customer, 
is  never  as  effective  as  a  lengthy  personal  letter  taking  up 
every  detail  of  the  case.  Here  is  one  place  where  brevity  should 
be  avoided.  This  is  especially  tiTie  with  country  and  small-town 
customers.    One  letter  of  this  kind  opens : 

"A  careful  investigation  shows  us  that  your 
order  of  the  9th,   which  you  say  has  not  been  re- 
ceived, was  filled  and  turned  over  to  the  Blank 
Express  Co.,   the  25th  --  the  same  day  it  was  re- 
ceived.    The  enclosed  receipt  will  show  you  how 
carefully  we,   as  shippers,   make  consignments." 

Then  the  letter  continues  with  a  detailed  explanation  of  why 
delays  are  often  inevitable  with  the  transportation  companies. 
This  house  offers,  in  the  letter,  to  stand  back  of  the  customer 
to  insure  that  he  loses  nothing.  It  agrees,  upon  the  return  of  a 
notation  from  the  local  express  agent  stating  that  the  goods 
have  not  arrived,  either  to  duplicate  the  goods  or  refund  the 
money.  This  is  adjustment  beyond  the  point  where  the  house 
is  responsible,  but  it  has  proved  a  wise  policy  since  it  gives  a 

(37) 


confidence  in  the  house  that  insures  additional  sales  as  well  as 
holding  present  business. 

When  goods  are  damaged  in  transit,  as  the  result  of  care- 
lessness or  neglect  of  the  transportation  company,  or  as  the 
result  of  imperfect  packing  at  the  house,  the  letter  acknowl- 
edging the  complaint  usually  paves  the  way  for  a  quick  settle- 
ment, at  minimum  cost.  Many  concerns  ask  the  customer  to 
secure  the  local  freight  agent's  notation  of  the  amount  of 
damage  and  the  condition  of  the  goods  on  their  arrival.  This 
is  made  on  the  bill  of  lading  and  the  bill  is  returned  to  the 
house,  thus  avoiding  any  question  that  might  arise  over  the 
amount  involved. 

With  some  articles,  the  damage  may  be  repaired  by  the  cus- 
tomer, after  an  estimate  of  the  probable  cost  has  been  accepted, 
and  the  expense  borne  either  directly  or  indirectly  by  the  house. 
In  any  case,  it  has  been  found  most  satisfactory  to  pay  such 
claim  at  once,  looking  to  the  transportation  company  to  make 
reimbursement  later  if  it  is  responsible  for  the  damage.  With 
mail  order  houses  where  reorders  are  an  important  factor  in 
the  business,  a  cheerfully  given  refund  or  an  entirely  new  ship- 
ment, when  the  damaged  goods  are  useless,  is  practically  the 
only  thing  to  do. 

Sometimes  a  fair  valuation  may  be  placed  upon  the  damaged 
goods  and  the  customer  may  be  asked  to  pay  only  for  value 
received.  Transportation  company  reports  are  often  long 
delayed  and  settlements  slow,  so  it  is  usually  best  to  make 
immediate  adjustments  to  show  the  customer  that  the  house 
wants  to  help  him — the  house  can  better  afford  to  wait  for  the 
settlement  with  the  carrier. 

In  handling  the  complaint  on  goods  that  are  not  as  ordered 
too  often  an  attempt  is  made  to  convince  the  customer  by  argu- 
ment that  he  should  accept  them.  This  is  now  considered  a  poor 
business  policy  by  the  better  class  of  mail  order  managers. 
While  such  complaints  often  arise  through  some  fault  of  the 
customer  in  ordering — which  the  investigation  readily  proves — 
experience  shows  that  the  most  profitable  method  of  settlement 
in  the  long  run,  is  to  exchange  the  goods  at  the  expense  of  the 
house.    A  letter  of  this  kind  is  usually  most  effective : 

(38) 


Dear  Sir: 

We  are  very  sorry  that  you  find  the  goods  are 
not  as  you  expected.  We  have  looked  up  the  order 
and  find  that  you  inadvertently  gave  the  wrong  num- 
ber, as  you  may  readily  see  by  the  enclosed  dupli- 
cate. While  we  do  not  feel  that  we  are  in  any  way 
at  fault,  we  want  to  thank  you  for  giving  us  the 
opportunity  of  making  an  explanation  and  of  helping 
you  out.  If  the  goods  are  of  no  use  to  you  we  will 
gladly  exchange  them,  for  we  would  not  have  you 
dissatisfied  for  many  times  the  small  cost  of 
shipment  charges. 

Very  truly  yours, 

BLACK  &  BLACK. 

And  many  times  the  customer  will  keep  the  goods,  rather 
than  ask  so  considerate  a  house  to  bear  an  unjust  expense;  or 
he  will  at  least  offer  to  pay  the  transportation  cost. 

But  if  the  house  is  at  fault  through  some  mistake  in  the 
shipping  department,  it  is  usually  advisable  to  tell  the  customer 
frankly.  Point  out  to  him  that,  even  with  the  most  careful 
attention,  mistakes  are  sometimes  inevitable;  that  the  house 
sincerely  regrets  any  inconvenience  that  may  have  been  incurred 
through  an  employee's  mistake;  that  if  the  customer  cannot 
use  the  goods  they  will  be  exchanged  without  expense  to  him, 
and  that  in  the  future  every  effort  will  be  made  to  guard  against 
similar  trouble.  Such  a  letter  is  sure  to  give  the  customer  a 
high  opinion  of  the  house  and  to  make  him  a  warmer  friend. 
Sometimes  a  discount  offered  on  the  goods  sent  will  induce 
the  customer  to  use  them,  even  though  they  are  not  exactly  as 
ordered,  and  this  is  often  a  more  profitable  method  of  settle- 
ment because  of  the  expense  of  having  the  goods  returned. 
And  a  small  reduction  in  price  will  often  settle  a  claim  that 
bears  all  the  earmarks  of  an  ugly  situation. 

The  claim  that  the  goods  are  unsatisfactory  is  the  most 
difficult  to  handle.  It  requires  tact  of  the  highest  sort.  So  the 
acknowledgment  letter  skilfully  aims  to  ward  off  antagonism 
and  then  discover  exactly  where  the  customer  finds  a  fault. 
Often  it  is  merely  a  matter  of  opinion,  and  a  little  tactful 
explanation  in  the  second  letter  will  end  the  matter.  Perhaps 
the  customer  fails  to  understand  the  nature  and  operation  of  the 
article  or  its  proper  application.  Then  a  letter  educating  him 
to  its  qualities  will  restore  him  to  a  satisfied  mood : 

(39) 


Dear  Sir: 

We  appreciate  your  fairness,  Mr.  Jones,  in  ad- 
vising us  of  your  difficulty  in  making  Pacific  Lead 
cover  your  surface  well.  With  painters  who  are  ac- 
customed to  mixing  ordinary  leads  we  can  readily  see 
how  easy  it  is  to  go  wrong  when  first  mixing 
Pacific. 

Pacific  Lead  is  ground  so  much  finer  than  other 
leads  and  it  has  a  so  much  better  body  that  it 
offers  more  resistance  to  the  mixing  paddle  and 
makes  the  painter  think  he  has  not  used  enough  oil, 
and  consequently,  he  continues  to  pour  in  the  oil 
until  he  has  added  so  much  that  it  impairs  the 
body  of  his  paint. 

If  you  will  use  precisely  the  same  amount  of 
oil  by  measure  with  Pacific  Lead  as  you  would  with 
ordinary  brands  when  first  mixing  Pacific,  you  will 
find  that  our  product  will  cover  far  better  than 
the  other  leads.  Gradually  you  can  add  more  oil  to 
your  subsequent  mixings  of  Pacific  when  you  have 
become  accustomed  to  the  feel  of  the  paddle  in 
Pacific  Lead.  You  will  then  have  a  paint  that  will 
not  only  cover  fully  one-quarter  more  surface  than 
the  brand  you  have  been  using,  but  one  that  will 
spread  easier  under  the  brush,  give  you  a  decidedly 
whiter  job  and  prove  more  durable. 

If  there  are  any  other  points  in  this  connec- 
tion that  we  can  advise  you  on,  don't  hesitate  to 
call  on  us. 

Very  truly  yours, 

PACIFIC  LEAD  COMPANY. 

With  a  practical  explanation  the  correspondent  attempts  to 
bring  the  customer  around  to  the  house  attitude  in  the  matter. 
If  the  goods  are  obviously  at  fault  in  some  particular,  an  imme- 
diate reimbursement  of  money  paid  and  expenses  incurred  is 
offered  and  every  effort  made  to  show  that  the  house  aims  to  be 
fair  in  all  its  dealings.  If  the  fault  is  merely  an  imaginary  one, 
the  customer  is  treated  as  though  he  were  as  fair-minded  as 
the  house,  and  is  assured  that  the  trouble  is  not  at  all  serious. 
But  the  customer  is  never  left  while  he  feels  that  he  has  been 
treated  unjustly.  If  he  refuses,  absolutely,  to  be  satisfied,  he 
is  asked  to  return  the  goods. 

This  method  of  handling  the  dissatisfied  customer,  with  the 
average  mail  order  house,  is  profitable  because  of  the  adver- 
tising such  a  policy  is  certain  to  create.    But  it  may  not  be 

(40) 


adapted  to  the  concern  selling  expensive  specialties,  however. 

In  handling  and  adjusting  the  shortage  claim  it  is  vitally 
important  not  to  irritate  customers  through  letters  that  carry 
an  impression  of  suspicion.  The  validity  of  the  complaint,  for 
policy's  sake,  must  be  conceded.  While  the  house  usually  finds 
an  investigation  necessary  to  avoid  a  recurrence  of  similar 
claims,  this  should  be  made  in  a  way  that  will  not  give  offense. 
Allowing  such  claims  is  almost  always  advisable. 

Repeated  complaints  from  the  same  customer  are 
thoroughly  investigated  by  most  concerns,  for  a  dishonest  cus- 
tomer is  seldom  a  profitable  one ;  he  should  be  eliminated  from 
the  customer  file  or  kept  under  a  special  "Black  List." 

It  is  the  policy  of  one  house  to  refill  all  orders  as  soon  as 
it  learns  that  the  goods  have  failed  to  show  up,  provided  the 
claimant  secures  the  signed  notation  of  the  local  express  or 
freight  agent  that  a  shipment  has  not  been  received.  There  is 
little  chance  of  heavy  losses  to  the  company  by  this  policy,  for, 
in  case  the  goods  cannot  be  located,  the  transportation  company 
is  of  course  responsible  and  the  additional  transportation 
charges,  in  case  the  shipment  is  found  later  on,  is  compensated 
for  by  the  good  will  created  on  the  part  of  the  customer. 

With  routine  complaints  an  immediate  adjustment  and, 
if  necessary,  a  later  investigation,  is  generally  accepted  as  the 
most  profitable  policy,  if  the  amount  involved  is  not  too  large. 
But  when  an  adjustment  means  the  expenditure  of  a  consid- 
erable sum  it  is  necessary  for  the  house  to  know  all  the  details 
of  the  trouble  before  making  or  refusing  a  settlement.  A  care- 
ful investigation  usually  indicates  the  most  effective  policy  to 
adopt. 

As  in  the  settlement  of  the  small  routine  complaint,  the 
making  of  a  big  adjustment  is  strongly  influenced  by  the 
attitude  of  the  house  in  its  letters.  The  buyer  of  the  goods 
always  wants  assurance  that  his  claim  will  receive  immediate 
attention.  So  the  first  purpose  of  the  letter  in  handling 
detailed  investigations  and  making  big  adjustments,  is  to  show 
the  willingness  of  the  house  to  be  fair  and  just;  to  pave  the 
way  for  such  steps  as  are  necessary  in  the  investigation  and  to 
keep  the  customer  in  good  humor  until  some  definite  action  can 
be  taken. 

(41) 


UNIVERSITY  OF  CALIFORNIA  LIBRARY 
BERKELEY 

Return  to  desk  from  which  borrowed. 
This  book  is  DUE  on  the  last  date  stamped  below. 


^  V^ti^3 


Caylord  Bros. 

Makers 
Syracuse,  N.  Y. 

MT.  WH.  11.  IW 


J69986 


UNIVEE^ITY  OF  CAUFORNIA  UBf^ARY 


